Closing bell: Sensex tumbles by 193 pts, Nifty sustains 11,900 levels; Tata Steel, ONGC, TCS, GAIL among top gainers
The stock market ended in red ahead of the CPI and IIP data, taking cues from Asian peers. The market slipped after the US President Donald Trump warned Chinese President Xi Jinping that the White House would impose another round of tariff on the Chinese imports.
The stock market ended in red ahead of the CPI and IIP data, taking cues from Asian peers. The market slipped after the US President Donald Trump warned Chinese President Xi Jinping that the White House would impose another round of tariff on the Chinese imports. The BSE Sensex on Wednesday was 193 points shot after closing at 39,756 levels while the 50-stock Nifty lost 59.4 points and closed at 11906 levels.
The index Bank Nifty dived 221 points and closed at 31,255 levels. Tata Steel, ONGC, GAIL, Vedanta, TCS stocks were among the top gainer in the intraday trade while Yes Bank, Maruti Suzuki, Indiabulls Housing Finance, Hero MotoCorp, Bharti Infratel were among the top losing stocks today.
Reliance Securities on Automobile Sector said, Domestic auto volume declined by 9% YoY but increased 4% MoM to 20,86,358 units in May’19 due to lower retail demand across segments coupled with inventory correction by few players. Going forward, we expect slowdown to continue, as rural demand is not picking up due to liquidity crisis in NBFC space and various rural markets impacted by monsoon deficit during the last year.
''After inventory destocking existing inventory continues to remain at higher-than-normal level for most players. Therefore, few companies also announced production cut recently. this would continue to impact the wholesale dispatches to some extent in 1HFY20, in our view,'' Reliance Securities further added.
Senior Technical & Derivative Analyst at HDFC securities said, "The choppy trend continued in the market today and the Nifty closed the day on Tuesday on a modest gains. A high wave or a doji type candlestick pattern was formed today, which is back to back in the last two sessions. This pattern signals a weak strength in the upside bounce. Though, Nifty moved up, the market breadth was not in favour of bulls."
''The short-term trend of Nifty is positive with range movement. This weak upside bounce is not going to stay for long and one may expect higher levels weakness soon in the market. Immediate resistance to be watched at 12,000 levels," according to Shetti.
The benchmark Nifty index saw a clean move up to 12000 levels where resistance was seen once again. Despite the not-so-healthy newsflow environment, the market has been able to sustain above supports very well, which is an encouraging sign. The Bank Nifty too saw a smart move yesterday as it rallied almost 400 points from the lowest point to the highs. The Mid-cap index closed in the green and is close to an important trigger. Once confirmed a clean up trending move could be seen in the next couple of weeks, according to JM Financial.
The oil prices fell nearly 2% on Wednesday, weighed down by a weaker demand outlook and a rise in US crude inventories despite growing expectations of ongoing OPEC-led supply cuts. While the Dollar was at Rs 69.33 per dollar at 3.30 hrs on account of growing expectations of a US rate cut next week while high-yielding currencies suffered due to ongoing trade tensions.
Talking about the Asian market, Dow Jones remained Among Asian stocks, Japanese Nikkei 225 index eased down 0.02 per cent, South Korean Kospi slid 0.15 per cent, Hang Seng crashed over 1.5 per cent while the Shanghai market went off over half a per cent.